When Dimmesdale condemned himself before his congregation, how did the people respond?

They thought that he was more holy than before. Here is a translation,

"They heard it all, and it only increased their admiration. They never imagined the true meaning lurking behind his words of self-condemnation. “The godly young man!” they said to themselves. “He is a saint on earth! If he has such sinfulness in his own pure soul, what horrors must he see in yours or mine?”